Supply Concerns Drive Up Coffee and Cocoa Prices

Forex - Agricultural commodity prices are rising, with Arabica coffee futures increasing to $3.28 per pound, while cocoa futures also rose by 1.8% to $9,235 per ton.

Coffee prices have increased by 74% since the beginning of 2024, gaining 8.4% in value just over the past week.

Carsten Fitch from Commerzbank stated, "Similar to cocoa, this rise in coffee reflects a poor product outlook for Brazil in 2025 and is in line with this year's lower-than-expected harvest. It has been reported that Brazilian coffee producers are delaying their sales in anticipation of higher prices for the upcoming harvest."

Fitch also mentioned, "There are concerns about lower robusta coffee production in major producers like Vietnam due to drought and heavy rainfall at the start of the harvest."

Robusta coffee has seen a slight increase of 0.1% to $5,573 per ton.